for years conservatives on this board have argued that if you produce a commodity
the demand will follow (the infamous 20% who would swear the sky was green if a
conservative pol or right wing talker told them so). those of us who live in the real
world have attempted for years to bring them to reality.
not that talking to a bunch of rock heads will do any good - hear is energy secretary
rick perry (thunderous laughter) making the conservative case for lunacy.
“Here's a little economics lesson: supply and demand,” Perry said, according to Taylor Kuykendall of Standard & Poor's. “You put the supply out there, and demand will follow.”
People often talk about supply and demand in economics, but not in the way Perry used the terms. In essence, supply refers to whether goods and services are readily available on the market, and demand refers to how badly consumers want those products. Just supplying a product does not create demand for it.
If Perry was suggesting that no matter how much coal the industry produces, there will be demand for it, he was clearly mistaken. Of course, demand for coal — or any other item — is not infinite. People will only buy so much of it at a given price, and producers will only be able to sell more if they bring down the price.
If producers in a given industry simply “put the supply out there,” as Perry said, they'll be left with warehouses full of surplus goods. In other words, demand does not follow supply.
https://www.washingtonpost.com/news...y-720pm:homepage/story&utm_term=.86e5c1ae4f2c
the demand will follow (the infamous 20% who would swear the sky was green if a
conservative pol or right wing talker told them so). those of us who live in the real
world have attempted for years to bring them to reality.
not that talking to a bunch of rock heads will do any good - hear is energy secretary
rick perry (thunderous laughter) making the conservative case for lunacy.
“Here's a little economics lesson: supply and demand,” Perry said, according to Taylor Kuykendall of Standard & Poor's. “You put the supply out there, and demand will follow.”
People often talk about supply and demand in economics, but not in the way Perry used the terms. In essence, supply refers to whether goods and services are readily available on the market, and demand refers to how badly consumers want those products. Just supplying a product does not create demand for it.
If Perry was suggesting that no matter how much coal the industry produces, there will be demand for it, he was clearly mistaken. Of course, demand for coal — or any other item — is not infinite. People will only buy so much of it at a given price, and producers will only be able to sell more if they bring down the price.
If producers in a given industry simply “put the supply out there,” as Perry said, they'll be left with warehouses full of surplus goods. In other words, demand does not follow supply.
https://www.washingtonpost.com/news...y-720pm:homepage/story&utm_term=.86e5c1ae4f2c
